According to recent surveys, motor insurance premiums are increasing at their fastest rate for nearly a decade. In just 3 months alone, the average fully comprehensive car insurance policy has risen in cost by 3.5% meaning that a fully comprehensive motor insurance policy now costs £778.13 on average. This represents a 3.5% increase in the last few months and is an 11.3% increase year-on-year. With there being no signs of this trend slowing down, motorists may have to face up to the very real prospects of increasing insurance costs year after year.
Increasing costs are not just affecting fully comprehensive policies. Third party fire and theft policies which are for the most part purchased by young and inexperienced drivers have also increased in cost. An increase of 4.6% has seen the average price for a third party fire and theft policy increase to £968.22.
There are a number of factors that have lead to these increased motor insurance costs. Major contributors to these increases include theft, fraud, personal injury claims and legal expenses. Personal injury claims and legal costs associated to these claim are expected to reach £10.9bn by 2012. Whiplash injuries alone now add £66 to every insurance policy sold. Growing numbers of uninsured drivers also add around £30 to policies.
To combat these increasing costs there are a number of things motorists can do. The easiest way to save money on a car insurance policy is to shop around and compare car insurance providers. Other ways to save money on insurance policies include increasing your voluntary excess, paying for your policy annually rather than monthly and adding security devices to your vehicle.
Before purchasing your motor insurance be sure to
compare car insurance policies from a range of insurers. By completing a
car insurance comparison, it is likely that you will find the
cheapest car insurance available to you.
